Insurer Sues Over Sale of Body Parts Scandal Arguing No Coverage for Cadavers
On October 13, 2023, Liberty Mutual Insurance filed a lawsuit in Suffolk Superior Court seeking declaratory relief under Massachusetts General Laws Chapter 231A, §1 to determine its obligations under three homeowner insurance policies issued to David Lodge, the former morgue manager for the Harvard Medical School.
Lawsuits Against Lodge and Harvard Medical School
Liberty Mutual’s lawsuit seeks a determination that it has no duty under the Policies to defend or indemnify Lodge in connection with four lawsuits filed against Lodge and Harvard Medical School alleging the sale of body parts from bodies donated for anatomy classes and research:
(1) Ray et al. v. Lodge et al., Case No. 2384CVO1481 (based on parts of father’s remains sold)
(2) MacTaggart et al. v. Lodge et al., Case No. 2384CV01389 (“Class action based on parts of mother’s remains sold”)
(3) DePalma et al. v. Lodge et al., Case No. 21STCV42073 (“Parts of mother’s remains sold DePalma Action”)
(4) Johnson et al. v. Lodge et al., (Class action based on parts of mother’s remains sold)
Allegations Against Lodge in the four lawsuits
The complaints in the four lawsuits arise out of Lodge’s alleged unlawful scheme involving the dismemberment and sale of human body parts donated to Harvard Medical School for personal profit.
From 2018 to March 2023, Lodge allegedly stole and sold dissected body parts from donated cadavers at Harvard Medical School in the course of his employment as morgue manager. Also, Lodge allegedly allowed unauthorized third parties to enter the morgue and choose remains to purchase.
Specifically, the lawsuits allege that Lodge intentionally dissected and mishandled portions of donated cadavers and removed, transported, and sold dissected parts, including heads, brains, skin, and bones, to third parties.
Up to 400 occurrences under the disputed policies
The policies at issue are: Homeowners Policy Nos. H3V-212-017461–30 02, effective from October 30, 2020 to October 30, 2021; H3V-212-017461–30 12, effective from October 30, 2021 to October 30, 202; and H3V-212-017461–30 22, effective from October 30, 2022 to October 30, 2023.
While the exact number of cadavers whose body parts were sold is uncertain, one of the lawsuits identified in Liberty Mutual’s declaratory judgment as pending against Lodge and the Harvard Medical School alleges that some 350 to 400 donated bodies had parts possibly sold by Lodge.
With up to 400 separate occurrences, the amount at stake under Liberty Mutual’s policies is potentially substantial.
Each policy has liability limits per occurrence of $300,000. However, the policies have no aggregate liability limit. If there were coverage, which Liberty Mutual seems to rightly deny, and the body parts came from separate deceased individuals, each body whose parts were sold could spawn a separate occurrence with its own $300,000 limit.
Liberty Mutual Policy Exclusions
Last year, Lodge was indicted on criminal charges, including wire fraud, transporting hazardous materials, and fraudulent destruction of records related to the alleged body part sales scheme.
In its complaint, Liberty Mutual petitions the Superior Court to enter declaratory judgments, finding Liberty Mutual owes Lodge no duty to defend or indemnify him for the conduct alleged in the four lawsuits.
In part, the insurer argues:
Mr. Lodge’s alleged harvesting of body parts took place during the scope of his employment with Harvard Medical School and involved cadavers donated to the school, not his household premises.
Liberty Mutual’s complaint also asserts:
It would be against public policy to provide insurance coverage for the kind of intentional criminal conduct Mr. Lodge has been accused of.
Twenty days to respond after service of Liberty Mutual’s complaint
The filed lawsuit is out for service on Mr. Lodge. Once served with the lawsuit, Lodge will have twenty days to respond to Liberty Mutual’s complaint.
